Total own funds as at 31 December 2020 increased by PLN 3,155,073 thousand compared to 31 December 2019.
Pursuant to the Resolution of the Ordinary General Shareholders’ Meeting of BNP Paribas Bank Polska S.A. of 29 June 2020, the entire profit of the Bank for 2019, amounting to PLN 628,696 thousand, was allocated to reserve capital.
On 28 December 2020, the Bank received the decision of the Polish Financial Supervision Authority to approve the inclusion of subordinated loan in the amount of PLN 2.3 bilion as an instrument in the Bank’s Tier II capital. The subordinated loan agreement was signed by the Bank with BNP Paribas S.A. on 7 December 2020 to meet the minimum requirement of the level of own funds and eligible liabilities (MREL).
The total risk exposure as at 31 December 2020 amounted to PLN 84,447,701 thousand and increased by PLN 755,436 thousand compared to 31 December 2019.
In accordance with the Act of 5 August 2015 on macroprudential supervision over the financial system and crisis management in the financial sector and Regulation of the Minister of Finance, since 1 January 2019 the capital requirements binding for Polish banks increased due to:
- introduction of the systemic risk buffer at the level of 3%,
- increase of the capital conservation buffer from 1.875% to 2.5%.
On 19 March 2020, the Regulation of the Minister of Finance (Journal of Laws of 2020, item 473) of 18 March 2020 on the system risk buffer entered into force – reduction of the buffer from 3% to 0%.
On 27 June 2020, Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020 amending Regulations (EU) No 272/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic entered into force, allowing, among others, for the reduction of risk weights for selected SME loans.